b) Terms/rights attached to equity shares:
The Company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share held.
In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive any of the residual assets of the Company, after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.
As per records of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
f) Distributions made :
Interim dividend for Year 2024 of ' 115 per equity share [31st December, 2023: ' 157 per equity share] aggregating to ' 240.12 Million [31st December, 2023: ' 327.82 Million] was paid in the month of May 2024 [31st December, 2023: August 2023].
During the year 2024 final dividend for 31st December, 2023 of ' 17 per equity share approved by shareholders at the Annual General Meeting held as at 25th April, 2024 paid aggregating to ' 35.50 Million.
The Board of Directors at its meeting held on 12th February, 2025 do not recommended any final dividend for the year ended December 2024.
(i) Retained Earnings can be distributed by the Company as dividend to its equity shareholders and the same is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013.
(ii) Capital Reserve is created on account of business combination transaction between the Company and SPGPrints B.V. in 2019 to acquire the Service and Spare Parts Business relating to Rotary Printing Equipment.
(iii) Capital Redemption Reserve created on redemption of Redeemable Preference shares. The reserve can be utilised in accordance with the provisions of the Companies Act, 2013.
(iv) Securities Premium represents the premium received on issue of shares over and above the face value of equity shares. The reserve is available for utilisation in accordance with the provisions of the Companies Act, 2013.
(v) General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
(vi) This reserve represents the cumulative gains and losses arising on revaluation of equity instruments measured at fair value through other comprehensive income.
1 The Company has made provision for disputed Labour matters for ' 4.89 Million (31st December, 2023: ' 4.89 Million) for claim filed by employees for claiming Voluntary Retirement Scheme (VRS) benefit in earlier years.
2 A provision is recognised for expected warranty claims on products sold during the year, based on past experience of level of repairs and returns. It is expected that this cost will be incurred by end of next financial year. Assumptions used to calculate the provision for warranties were based on current sales level and information for best possible estimate available on returns.
28 Disclosures as required by Ind AS - 19 Employee Benefits:
(a) Defined Contribution Plan :
The Company operate defined contribution plans in the form of provident and other funds. The Company has no obligation, other than the contribution payable to the provident and other funds. The Company recognizes contribution payable to the provident and other funds as an expense, when an employee renders the related service.
(b) Defined Benefit Plans:
The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment. The scheme is funded with the Life Insurance Corporation of India in form of a Group Gratuity Policy. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age.
The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the gratuity plan.
vi. Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another. The results of sensitivity analysis is given below:
viii. Risk exposure to defined benefit plans
Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:
Interest Rate Risk
The plan exposes the Company to the risk off all in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.
Liquidity Risk
This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non-availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.
Salary Escalation Risk
The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.
Demographic Risk
The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumptions.
Regulatory Risk
Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts.
Asset Liability Mismatching or Market Risk
The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities/fall in interest rate.
Investment Risk
The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.
ix. Effect of Plan on Entity's Future Cash Flows a) Funding arrangements and Funding Policy
The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance Company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.
(c) Other employee benefits:
The compensated absences cover the Company's liability for earned leave. The entire amount of the provision of ' 34.36 Million (31st December, 2023: ' 26.64 Million) is presented as current, since the company does not have an unconditional right to defer settlement for these obligations. Expected amount towards settlement of Leave for the next 12 months are ' 3.21 Million (31st December, 2023: ' 2.80 Million) as per actuarial valuation.
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
29 Leases
Operating Lease : As a Lessor
The Company has entered into cancellable lease agreements for use of certain area of its building premises for a period of one year. The lease rentals aggregating ' 0.94 Million (31st December, 2023: ' 0.88 Million) have been included under the head “Other Income” Note 19 “Lease Rentals” of Statements of Profit and Loss.
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31 Contingent liabilities and Capital Commitments: a) Contingent Liabilities
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(' in Million)
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As at
31st December, 2024
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As at
31st December, 2023
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Disputed labour matters #
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4.00
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4.00
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Disputed Income tax matters a
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4.38
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4.38
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Disputed Indirect tax matters*
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1.09
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1.09
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9.47
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9.47
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# Disputed Labour matters include ' 4.00 Million (31st December, 2023: ' 4.00 Million for claim filed by
employees for compensation under Voluntary Retirement Scheme (VRS) benefit in earlier years.
A Disputed Income tax matters include:
1) Demand from Income tax authorities for payment of additional income taxes of ' 4.30 Million (31st December, 2023: ' 4.30 Million) for the Assessment Year 2017-18 for matter related to disallowance of provision for warranty expenditure against which Company has preferred an appeal before appropriate authorities. Against this tax matter company has paid ' 0.80 Million (31st December, 2023: ' 0.80 Million) under protest.
2) Demands from Income tax authorities for payment of additional income taxes of ' 0.08 Million (31st December, 2023: ' 0.08 Million) for the Assessment Year 2013-14 for matters related to disallowance of weighted deduction claimed u/s 35(2AB) of the Income Tax Act, 1961, against which Company has preferred an appeal before appropriate authorities.
* Disputed Indirect tax matters include:
1) Service tax demands for credit taken on sales commission expense for the period February 2013 to February 2016 of ' 1.09 Million (31st December, 2023: ' 1.09 Million), against which the Company has appealed before appropriate authorities. The Company has paid ' 0.07 Million (31st December, 2023: ' 0.65 Million) under protest against this matter.
b) Capital Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Capital
Advances) as at 31st December, 2024 is ' 1.64 Million (31st December, 2023 is ' 3.31 Million).
E. Print Parent Limited (Cayman Islands), is Ultimate upstream holding company of Stovec Industries Limited. However, Print Parent Limited functions as an investment layer. Print Holdings B.V. (Netherlands) governs the operations of all the group entities below and effectively functions as Ultimate holding company for Stovec Industries Limited. Further, the company did not have any transactions or balance outstanding with Print Parent Limited during the current year and previous year.
(1) The key managerial personnel are covered under Company's employee policy. The proportionate amount of employee benefits (short term and long term) such as gratuity and leave encashment pertaining to the Key Managerial Persons has not been included in the aforementioned disclosures as these are not determined on individual basis and the management considered disclosure is not material. There are no other long term benefits, termination benefits or share-based payments given to Key Managerial Person.
(2) The Company has appointed independent consultant for conducting transfer pricing study to determine whether the transactions with the associated enterprises were undertaken at "arm's length basis". The transfer pricing study for the year upto 31st March, 2024 has been completed and based on the same, no adjustments are required in the accounts. The transfer pricing study for the year ended 31st March, 2025 will be conducted, and adjustments, if any arising from the transfer pricing study shall be accounted for as and when the study is completed. The management confirms that all the international transactions with associated enterprises are undetaken at negotiated contracted price on usual commercial terms. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash other than for advance.
(3) The Company has not provided any commitment to the related party as at 31st December, 2024 (31st December, 2023: Nil).
(4) Sitting fees and commission to independent directors as well as variable pay to key managerial personnel are disclosed on actual payment basis.
34 Segment Reporting
A Basis for segmentation
The chief operational decision maker monitors the operating results of its segment separately for the purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.
The Company has determined following reporting segments based on the information reviewed by the Company's CODM.
Segment revenue and results:
The expenses / income which are not directly attributable to any segment are shown as unallocable expenditure. The assets/ liabilities which are not directly attributable to any segment are shown as unallocable assets / liabilities.
Segment assets and liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade receivables, Inventory and other operating assets. Segment liabilities primarily include trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the segment are shown as unallocable assets / liabilities.
* Cost or raw material consumed includes purchase of stock-in-trade and changes in inventories of work-inprogress, stock-in-trade and finished goods.
The company previously accounted for specific items of material segmental income and expenses reviewed by CODM. Following the IFRIC agenda decision in July 2024 relating to Disclosure of Revenue and Expenses of Reportable Segment, the company has disclosed all material items and expenses that are included in the segmental profit and loss reviewed by the CODM. This change in accounting treatment has been accounted for retrospectively and comparative information has been restated.
C Information about secondary segments
The Company uses same set of assets for the sales made in the India and outside India. The expenses incurred for sales to be made in India and outside are Common. Accordingly, geographical segment is analysed based on the location of customers. The following provides an analysis of the Company's sales by geographical Markets:
36 Financial risk management objectives and policies
The Company's principal financial liabilities comprises of trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables, cash & cash equivalents and other bank balance that it derives directly from its operations.
The Company's business activities are exposed to a variety of financial risks, namely market risk, credit risk and liquidity risk. The Company's overall risk management focuses to minimize potential adverse effects of financial risks.
The Company's senior management has overall responsibility for the establishment and oversight of the Company's risk management framework. The Company's senior management is supported by the Board of Directors that advises on financial risks and the appropriate financial risk governance framework for the Company. This committee provides assurance to the Company's senior management that the Company's financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:
(a) Market risk :
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, foreign currency risk and commodity risk. Financial instruments affected by market risk include debentures, bank deposits, trade receivables, trade and other payables.
Within the various methodologies to analyse and manage risk, Company has assessed risk based on “sensitivity analysis” on symmetric basis. Sensitivity analysis provides an approximate quantification of the exposure in the event that certain specified parameters were to be met under a specific set of assumptions. The risk estimates provided here assume:
- a simultaneous, parallel foreign exchange rates shift in which the INR appreciates / depreciates against all currencies by 5%
The potential economic impact, due to these assumptions, is based on the occurrence of adverse / inverse market conditions and reflects estimated changes resulting from the sensitivity analysis. Actual results that are included in the Statement of profit & loss may differ materially from these estimates due to actual developments in the global financial markets.
The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and provisions.
The following assumption has been made in calculating the sensitivity analysis:
- The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held as at 31st December, 2024 and 31st December, 2023.
Interest rate risk:
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's investment in bank deposits. The interest rates for the tenure of the fixed deposits are fixed. However, with the continuous decrease in the returns on fixed deposits, the income earned on such deposits may change in future based on the interest rates.
The sensitivity analysis have been carried out based on the exposure to interest rates for bank deposits:
Foreign currency risk :
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's foreign currency risk arises out of various imports of raw materials and exports of its finished goods. The Company has a forex policy in place where the objective is to mitigate foreign exchange risk by deploying the appropriate hedging strategies through use of foreign currency forward contracts. The Company follows netting principle for managing the foreign exchange exposure.
The carrying amounts of the company's foreign currency denominated monetary assets and liabilities based on gross exposure at the end of the reporting period is given in note no. 38.
Foreign currency sensitivity
The following table demonstrates the sensitivity in the USD and EURO to the functional currency of the Company, with all other variables held constant. The Company's exposure to foreign currency changes for all other currencies is not material. There are no forward exchange contracts designated as cash flow hedges and net investment hedges and hence, there is no impact on the Company's pre-tax equity due to changes in the foreign currency rates. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabilities has been given below:
Commodity risk :
The Company is expose to the purchase price volatility of commodity i.e. Nickel based on London Metal Exchange. Any material fluctuation in price is expected to have impact on profitability of the company. As a policy, the company keeps safety stock for couple of month to avoid immediate price impact. Further, the company has made arrangement with its large customers to mitigate risk of such price fluctuation built in its nickel price. For other customers, the company appropriately changes its sale price to minimise the impact on profitability.
(b) Credit risk :
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk related to operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments. The Company does not have significant credit risk exposure to any single counterparty.
Trade receivables
Customer credit risk is managed by each division subject to the established policy, procedures and control relating to customer credit risk management. Credit risk is managed through credit approvals and establishing credit limits. Outstanding customer receivables are regularly monitored. The Company does not have significant credit risk exposure to any single counterpart.
The Company has used a practical expedient by computing the expected loss allowance for trade receivable based on historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due. The details disclose related to ageing and provision movement has been given in note no. 7.
Financial Instruments and cash deposits
Credit risk from balances with banks is managed by the Company's finance department. The Company's maximum exposure to credit risk from balance with bank is the carrying value of each class of financial assets disclosed in note no. 8.
(c) Liquidity risk :
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity by ensuring that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses.
The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st December, 2024 and 31st December, 2023. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.
The Company regularly monitors the rolling forecast to ensure it has sufficient cash on an on-going basis to meet operational needs. Any short term cash generated, over and above its working capital management and other operational requirement, is retained as cash and cash equivalents (to the extent required) and any excess is invested in term deposits with appropriate maturities to optimise the cash returns on investments while ensuring sufficient liquidity to meet its liabilities.
The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due without incurring unacceptable losses or risking damage to the Company's reputation. The Company ensures that it has sufficient fund to meet expected operational expenses, servicing of financial obligations.
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.
37 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to ensure that it maintains an efficient capital structure and healthy capital ratios in order to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The Company manages its capital structure and makes adjustments in light of changes in economic conditions or its business requirements. The Company maintains a debt free status and regularly declares dividend to its shareholders.
Notes :
A I ncrease due to better profitability compared to previous year combined with lower net worth (on account of dividend payment).
B Improvement in ratio due to lower working capital (inventory) and higher revenue from operations.
C On account of better profitability compared to previous year.
D Increase due to better profitability compared to previous year combined with lower capital employed (on account of dividend payment).
42 Other Statutory Information
(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
(ii) The Company does not have any transactions with companies struck off.
(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(vi) The Company does not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
(viii) Additional Regulatory Information/disclosures as required by General Instructions to Division II of Schedule III to the Companies Act, 2013 are furnished to the extent applicable to the Company.
(ix) The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority during the year ended 31st December, 2024 and 31st December, 2023.
(x) The Company is in compliance with number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 during the year ended 31st December, 2024 and 31st December, 2023
(xi) The title deeds of immovable property are held in the name of the company as at 31st December, 2024 and 31st December, 2023
(xii) The financial statements were approved for issue by the board of directors on 12th February, 2025.
43 a) Audit Trail:
With effect from 1st April, 2023, the Ministry of Corporate Affairs (MCA) has made it mandatory for every company, which uses accounting software for maintaining its books of account, to use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. the Company has used two accounting softwares for maintaining its books of account, which have a feature of recording audit trail (edit log) facility and that has operated throughout the year for all relevant transactions recorded in the software, except for the following:
(i) In respect of the core accounting software, the audit trail feature at the application level was not enabled for the period 1st January, 2024 to 17th October, 2024. With respect to database managed by a third party service provider, in the absence of any information pertaining to audit trail in the independent service auditor's report, we are not able to demonstrate audit trail (edit log) feature at database level. Additionally, the audit trail has not been preserved by the Company as per the statutory requirements for record retention until year end since an automated system clean-up job deleted audit trail records on monthly basis. However, the Company has taken corrective action post year ending when identified this issue and currently they are working with service provider to restore the audit trail to the extent possible.
(ii) With respect to another accounting software, the audit trail feature at the application level was not enabled for the period 1st January, 2024 to 11th November, 2024 and the with respect to database it was not enabled to capture any direct changes throughout the period.
For the period audit trail feature was enabled, it was not tampered during the year. Further, the Company has adequate internal controls operating effectively throughout the year.
b) Back up of books of accounts:
Pursuant to the amendment in the Companies (Accounts) Rules, 2014 effective from 11th August, 2022, requires that books of accounts and other relevant books and papers maintained in electronic mode should remain accessible in India at all times and backup must be taken on servers physically located in India. The Company has kept proper books of accounts in electronic mode on servers physically located in India on daily basis during the year except for certain books of account (for another accounting software), for the period 1st January, 2024 to 13th November, 2024.
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